The weekend was certainly one that Bitcoin investors will be looking to forget about, with Bitcoin ending the week, Monday through to the end of Sunday $9,600, down 7.99%.
It may not have been the biggest of losses amongst the major cryptocurrencies, but the failure of Bitcoin to even make a move on $10,000 on Sunday will raise some concerns over what lies ahead for Bitcoin.
Bitcoin saw two attempts of a retracement back through to its 38.2% FIB Retracement Level of $9,819 thwarted through the weekend, after sliding from Saturday’s 10,540.63 high to a Saturday low $9,260, which added further pressure on Bitcoin through to Sunday’s close.
In stark contrast, Litecoin was on the up on Sunday, with support coming ahead of the roll out of LitePay today, which will put Litecoin in direction competition with Bitcoin as the crypto alternative to fiat money.
At the time of writing, Bitcoin was down 1.9% to $9,408.9, with Bitcoin’s early intraday high $9.804.37 falling short of its first major resistance level of $9,902.3.
The trend through the early part of the day continues to look bearish, with the negative sentiment that surrounds the cryptomarket likely to lead to Bitcoin test its first major support level of $9,279 should sentiment not shift through the middle part of the day.
A move through $9,900 would support a run at $10,000 levels, though with uncertainty over the outlook towards the regulatory landscape continuing weigh on appetite for the cryptocurrencies, a Bitcoin rally will likely remain elusive for the day ahead.
Looking at the Cboe Bitcoin Futures March contract, this morning’s $590 fall to $9,330 will be another reason to tread carefully, as investors wait patiently for a reason to jump back in.
The weekend rally was certainly a shortened version of previous rallies, which is indicative of the current appetite, investors quick to lock in profits early on in a rally in fear of another slide should bad news hit the wires during the day.
All the news were are hearing at the moment are of the intentions to further limit market access for investors to the initial coin offering market, with the list of major international banks banning the use of credit cards to purchase cryptocurrencies lengthening further.
Across the rest of the cryptocurrency majors it was a sea of red, with Cardano down 4.65%, Stellar Lumen down 3.09% and NEM’s XEM down 3.54%, the Monday morning sell-off seeing the cryptomarket total market cap down at $422.58bn, with Bitcoin’s market cap down at $160.46bn.
For now, it’s hard to see what can provide the cryptos with a boost, other than the speculative moves that do little other than add volatility to the day and we’re unlikely to hear regulators provide any major support for the cryptos. Not until regulator frameworks have been established at least.